New challenge for impassioned builder

Johan Karlström is a relatively well-known name for those who have tracked Skanska over the years. He has been a member of the Senior Executive Team since 2001 and, consequently, has played a major role in the work that resulted in sharply improved profitability for the Group. This means that he has been part of developing the business plan and the new financial goals set by the Board of Directors for the period 2008-2010.

“Our goals and strategies are set. I have been involved in developing them. I support them and am looking forward to leading the work to realise them,” says Karlström. No revolution then, but he emphasises that, naturally, he will put his own mark on the company. The future will tell exactly how, he means.

Karlström joined the company in 1983, while he was still an engineering student at the Royal Institute of Technology (KTH) in Stockholm. However, it was earlier, when he worked as a carpenter for a few years, that he became interested in the construction industry. “Ever since then, I am genuinely passionate about the industry. I am always fascinated about how we are part of creating something – residential areas, hospitals, roads and bridges. Moreover, I am very action-oriented. I like making deals and, particularly, I enjoy working with people. So, the construction industry fits well.”

He also has a clear picture of why he likes working at Skanska. “The most important factor is all the skilled people in the company, all over the world,” he says. “They make Skanska a fantastic and dynamic company. This is decisive, since this is a ‘people’s business’. In the construction industry, it is people who determine whether the company becomes successful.”

He left the company in the mid-1990s to become President of the exchange-listed Swedish installation and services company BPA, later named Bravida. Five years later, he was asked to return to Skanska – something he has never regretted. Among other aspects, he is grateful for having Stuart Graham, CEO until April 2008, as boss for a number of years. He has learned a lot from Stu and is looking forward to maintaining close contact when Stu now moves back to the US and becomes Working Chairman of Skanska’s American construction operations.

An interest that they share is management development and leadership issues. With 60,000 employees worldwide and a need to employ 12,000 persons through 2010, this is a prioritised area for Skanska. Karlström has also worked with promoting diversity as a key element in this. “Developing leaders is the greatest issue for Skanska, and it is also one of my pet items. I believe strongly in teamwork and that we must have individuals that complement one another, then the results improve. It is also important that we have role models, skilled leaders, within Skanska.”

He describes his own leadership style as “open, honest and transparent.” He likes straight talk. He also means that you have to see the individual. There are also people to consider. And then there has to be action – something has to happen. That’s what the business thrives on.

Knowing where the company is going and having a vision are also important. He sees himself more as a visionary than interested in details. This is clearly apparent with regard to environmental and climate issues. “In this respect, I have a clear vision – that Skanska shall be perceived as the leading company in the world within green building,” he says. “Customers who want to order environmentally friendly buildings and infrastructure shall feel that the natural choice is Skanska. We have a distinct responsibility in these issues. Skanska has been involved in environmental efforts for some time, but we are now seeing an increased demand from customers. It involves doing what is right as well as taking responsibility and to benefit from the new business opportunities.”

In the environmental and climate debate, Karlström has been influenced by his years in the US. He has been responsible since 2004 for Skanska’s construction operations in the US – Skanska USA Building and Skanska USA Civil – with his base in New York. “The years in the US were fantastic. It was fun and eventful. Moreover, I think it was interesting and beneficial to view Sweden from the outside.”

For a person who describes himself as an outdoorsman, who loves to be in the mountains and at sea, several years living in New York City may seem disheartening. But Johan Karlström adapted and used his weekends to bike around in the big city to see and learn more.

Curiosity about seeing the new country and understanding Americans and their society also provided the incentive to take on a big challenge – to visit all the 50 states in the US. “It began with curiosity, but then became a bit of a competition. I made the goal in autumn 2007. The fact is that I have not met anyone else within Skanska in the US that has done the same thing.”

During his years in Skanska he has held a number of positions – including site manager, estimator, project engineer, project leader and regional manager for Skanska Norrland. He was also project leader for 3T in the 1990s, an initiative to increase productivity in construction. During his time as manager of building operations in the Nordic region at the beginning of the 2000s, the prior poor performance was reversed to profitability. Combined with the rapidly improved margins in the US in recent years, this has resulted in some outsiders labeling him as the ‘clean-up artist’ – a description with which he does not really agree.

“I don’t see it that way. What has also interested me is change, to develop and drive Skanska forward. I want to take the company to the next level. It involves so much more than profitability. I am driven by challenges and becoming the CEO of Skanska is the biggest challenge for me. Getting this opportunity to be part of developing and influencing in a company in which I truly believe will be very exciting.”